On January 1,2019,bonds with a face value of $94,000 were sold.The bonds mature on January 1,2029.The face interest rate is 8% annually.The bonds pay interest semiannually on July 1 and January 1.The market rate of interest is 10% annually.What is the market price of the bonds on January 1,2019? The present value of $1 for 20 periods at 5% is 0.377.The present value of an ordinary annuity of $1 for 20 periods at 5% is 12.462.The present value of $1 for 10 periods at 10% is 0.463.The present value of an ordinary annuity of $1 for 10 periods at 10% is 6.145.(Round your final answer to the nearest dollar. )
A)$82,295
B)$66,627
C)$94,000
D)$97,760

Question

Quizplus · Accepted Answer

($94,000 × 0.377)+ ($94,000 × 4% × 12.462)= $82,295

On January 1,2019,bonds with a Face Value of $94,000 Were